Hong Kong Treasury: Developing tax incentive optimization plan to strive for passing in the next legislative year.

The Commissioner of Inland Revenue of Hong Kong, Mr. Chen Ho Lam, stated in his speech at an event organized by The Taxation Institute of Hong Kong (TIHK) that Hong Kong is currently formulating optimization plans for tax incentives for funds, single family offices, and associated equity. The aim is to pass the relevant optimization plans in the next legislative year and implement them in the 25/26 tax year. He mentioned that the optimization plans include expanding the definition of "funds" under the tax-exempt regime to include retirement funds and donation funds; adding eligible types of transactions for tax concessions for funds and single family offices, such as carbon emission derivatives/emission quotas and carbon credits, insurance-linked securities, loans and private debt investments, and virtual assets; and optimizing the tax arrangements for associated equity of private equity funds to further attract overseas funds and family offices to establish businesses in Hong Kong. Mr. Chen Ho Lam emphasized that taxation will continue to play a key role in Hong Kong's journey towards innovation, green economy, and greater international connectivity.